Following the recent acquisition of leading directory publisher Best Lawyers by private equity firm Levine Leichtman I spoke with Best Lawyers chief executive, Phillip Greer, for more on the story.
LP
Tell us about how the deal came about?
PG
It’s been an intensive year for everyone involved. Many of us have been with this company for a long time, so we felt very close to everything. We received interest from a handful of different parties and talked seriously to a few private equity firms. In the end, the best fit was with Levine Leichtman, and they have been great to work with.
LP
And what about the team? Have there been any changes?
PG
For Steve [Naifeh], it is a bittersweet moment as it marks the end of his association with the business. He founded this company in 1981, and after a remarkably successful career, can retire from this business to focus on his art and other interests.
For myself, I’ve been with the company for 13 years and became President in 2013. I will be the most senior person at Best Lawyers moving forward and will continue to run the company—a transition that has been going on for a few years as Steve increasingly shifted responsibility to me.
The other two key people—my chief lieutenants—are Alysa Carmichael, Director of Finance, and Elizabeth Petit, Director of Research & Development and Managing Editor.
Additionally, with Levine Leichtman’s guidance, a new leadership board has been formed comprised of two Levine Leichtman executives and myself.
LP
And on a personal note, for you?
PG
This past year, I moved back to South Carolina where our headquarters is based. I was in New York for a few years to develop our office there, but I also have two kids—an 8-year-old and an 11-year-old—and we wanted to be back in South Carolina closer to family.
I will continue to travel regularly to meet with our offices in New York, Jacksonville, and now also LA to strategize with the Levine Leichtman team.
LP
Can you tell us a bit more about Levine Leichtman?
PG
They’ve been great to work with so far—sharp and analytical on the financial side. Plus they have great industry experience as they’ve invested in so many other companies in other industries, so they are a very good resource for us.
We’re a smaller company for their portfolio, with around 45 employees, but they have treated us respectfully and ensured that we have the resources and support that we need.
LP
Will law firms and legal marketers notice any differences to the directory process or how they engage with Best Lawyers?
PG
No, it’s business as usual. Our company values, and proven methodologies are remaining the same. And there are no changes being made to the three offices located in: Aiken, South Carolina; Brooklyn, New York; and Jacksonville, Florida.
LP
What is in the pipeline as far as products go?
PG
The big one is our Lawyer Directory—that’s the key focus for us. We announced the project in 2017, and it is launching this month. We are very excited to continue to grow our portfolio of offerings for legal marketers and firms. Together with Levine Leichtman, we will continue to expand in appropriate areas to fit market needs.
LP
Levine Leichtman also acquired Law Business Research last year. Was it a coincidence that they now have two legal publishers with prominent legal directories (LBR owns Who’s Who Legal, which is like Best Lawyers)? Or did they target the publications with a view to combining them?
PG
While Law Business Research and Best Lawyers might fall into similar industry markets, we provide different services to different markets. Law Business Review does operate “Who’s Who Legal” but they focus exclusively on business law.
I look forward to working closely with Levine Leichtman to determine potential partnerships and cross-promotional opportunities with their other entities.
LP
Why are private equity firms suddenly interested in legal publishing and legal directories? Levine Leichtman bought Law Business Research and now Best Lawyers. Inflexion just invested in Chambers & Partners. And you have Avvo joining up with Internet Brands, adding to the deal activity in the sector. There have been other deals as well.
PG
The directories industry is clearly growing.
My hunch, and I have no proof of this, is that the principals at the private equity companies are looking 10 years down the line and predicting that artificial intelligence and automation will have a significant impact on the legal profession, and they see legal publishing/directories as a way of getting into this sector.
You may have artificial intelligence in a few years putting together contracts and deals, but you still will need platforms and products to match up clients with lawyers, the buyers and providers of legal services, and directories and legal publishing will play a big part in that.
It’s similar to what has happened with doctors and the medical profession. Our founders Steve and Greg originally founded a similar company called Best Doctors, which sold in 2001. Recently, the company was sold again for $440 million, which shows the incredible financial potential of business-to-consumer platforms. We’re seeing the rise of telemedicine, which the likes of Amazon and Microsoft are buying into because they think that artificial intelligence will help create a digital business surrounding medical diagnoses.
In these data- and information-rich professions like medicine and law, artificial intelligence can absorb that knowledge. I think investors believe that a similar trend will occur in legal, and that is driving some of this deal flow.
Pictured: The Willcox Hotel, Aiken, South Carolina – Best Lawyers HQ.
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